IMPACT OF MADE-IN-NIGERIA PRODUCTS ON THE ECONOMIC DEVELOPMENT OF NIGERIA (A CASE STUDY OF INNOSON GROUP OF COMPANIES)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

As new ideas in technology continue to evolve, the production efficiency of made in Nigeria products continue to increase. History has it that the economy of Nigeria has thrived with the growth of Nigeria made products ranging from the time of dependence on agricultural products such as cocoa and other related products.

The impact of made in Nigeria products on the economy of Nigeria was very high in the seventies (70s)as these products are exported from Nigeria to other countries.

It is evident that even with a high level of poverty in Nigeria the manufacturing sector has one of the highest contributions to the gross domestic product of Nigeria (GDP).

According to (Ayodele, Obafemi and Ebong, 2013) stated that Nigeria has about 75% of land suitable for agriculture; to move forward the country must improve the low productivity of current agricultural companies, engage the level of competition within the agricultural sector, develop domestic policies and increase the funding for this sector.

Another made in Nigeria product that have significant effect on the economic development of Nigeria is the oil and gas sector; Oil being the mainstay of the Nigerian economy plays a vital role in shaping the economic and political destiny of the Nigeria. The crude oil as made in Nigeria product serves as a source of foreign exchange to Nigeria and other countries.

Among other made in Nigeria products, the major contributors the GDP are the agricultural sector and the oil and gas sector. Their impact is also visible in the area of employment, as a source of revenue to the federal government of Nigeria, the impact of made in Nigeria products is also noticed in the area of expenditure control and foreign exchange reserve etc.

The growth of small and medium scale industries in Nigeria has added more to the products available for sales in Nigeria such flour, rice etc.

1.2 STATEMENT OF PROBLEM

What led to the study on the impact of made in Nigeria products on the economic development of Nigeria was due to poor performance of the made in Nigeria goods in the Nigeria market as a result of the competition faced by the importation of other products made in other countries in Nigeria; consumers tend to prefer the foreign products to the made in Nigeria products.

Another problem to point out is lack of quality in most of the made in Nigeria products, when a consumer cannot get the value for his or her money spent on a particular commodity, he or she is dissatisfied with the product as a result they made a scale of preference based on quality.

The over importation of foreign products is doing the economy of Nigeria more harm than good as more resources are put into the made in Nigeria products, after the production process, the government of Nigeria and other business men tend to still waste another resources on importation.

1.3 AIMS AND OBJECTIVES OF STUDY

The main aim of the study is to examine the impact of made in Nigeria products on the economic development of Nigeria. Other specific aims of the study are:

1. To examine the relationship between made in Nigeria products and the economic development of Nigeria
2. To examine the effect of government policy on the performance of made in Nigeria products
3. To examine the effect of the importation of foreign product on the level of competition with the made in Nigeria product in today’s market
4. To investigate on factors affecting the performance of made in Nigeria product
5. To examine the effect of made in Nigeria product on the economy of Nigeria
6. To proffer solution to the above problems

1.4 RESEARCH QUESTION

In the order to ascertain the above stated objectives the study came up with the following research questions. The research questions are stated below as follows:

1. Is there any relationship between made in Nigeria products and the economic development of Nigeria?
2. What is the effect of government policy on the performance of made in Nigeria products?
3. What is the effect of the importation of foreign product on the level of competition with the made in Nigeria product in today’s market?
4. What are factors affecting the performance of made in Nigeria product?
5. What the effect is of made in Nigeria product on the economy of Nigeria?

1.5 RESEARCH HYPOTHESIS

H0: there is no significant relationship between made in Nigeria products and economic development in Nigeria

H1: there is significant relationship between made in Nigeria products and economic development in Nigeria

1.6 SIGNIFICANCE OF STUDY

The study will be of immense benefit to the federal government of Nigeria, the citizens, business owners, the oil and gas sector and the agricultural sector of Nigeria as it will discuss the relationship between made in Nigeria products and economic development in Nigeria, the study will also highlight the factors affecting the performance of made in Nigeria products in the market today. Finally the study will discuss the effect of government policy on the importation of foreign products and its effect on the development of made in Nigeria products.

1.7 SCOPE OF STUDY

The study on the impact of made In Nigeria products on the economic development of Nigeria will cover the contributions of made in the Nigeria products to the GDP, the contribution to the level of unemployment in Nigeria, it will also cover the factors affecting the performance of made in Nigeria products in the market today.

1.8 LIMITATIONS OF STUDY

1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 DEFINITION OF TERMS

PRODUCTS: an article or substance that is manufactured or refined for sale.